Consumer Packaged Goods (CPG) Industry Overview: 2023 & 2024

by Josh Howarth
July 17, 2023

The consumer packaged goods (CPG) market is a dynamic sector that encompasses a wide range of everyday products used by consumers. From food and beverages to personal care items and household products, CPGs are essential to modern daily life.

This sector is extremely sensitive to consumer demands and perceptions. For many years, that meant the space was dominated by billion-dollar companies (like Procter & Gamble). But in recent years, smaller direct-to-consumer CPG brands have been gaining momentum.

The CPG marketplace is also in the midst of a digital transformation that is radically changing how consumers shop and how brands deliver their products.

In this report, you’ll get a comprehensive overview of the CPG market that highlights the fundamental characteristics of the space as well as the key players and market trends of today.

What Is CPG?

Consumer packaged goods (often shortened to “CPG”) are products that consumers use frequently and eventually need to replenish or replace. Common CPG product categories include food, drinks, cleaning supplies, and makeup.

CPG Industry: Fast Facts

  • The CPG industry was valued at $11.49 trillion at the beginning of 2022.
  • The industry value is projected to reach $18.94 trillion by 2031, a CAGR of 5.1% from 2022 to 2031.
  • Top segments of the CPG space include food and beverage, cosmetics and personal care, pet supplies, OTC medicine and healthcare, and household and cleaning products.
  • Slow revenue growth—a CAGR 2.7%—is predicted for CPG companies throughout 2024.
  • U.S. consumers spend approximately $3.8 trillion per month on CPG products.
  • Approximately $1.3 trillion is spent on food each month.
  • CPG companies spend about 23% of their total budgets on advertising and marketing.
  • 29% of all CPG ad dollars were spent in the food segment. Non-alcoholic beverages took 9% of ad spend.
  • Procter & Gamble owns some of the most valuable CPG brands today. Pampers is valued at $13.832 billion and Gillette is valued at $10.211 billion.
  • L’Oreal is the clear leader in the cosmetics and personal care space with a value of $12.915 billion.
  • The pandemic spurred many consumers to purchase their CPG goods online from DTC companies. U.S. sales from DTC ecommerce are set to reach $212.81 billion by 2024.
  • Megababe is a CPG/DTC beauty brand. The company has been profitable since launching in 2017 and has grown 70% year-over-year. They now sell more than one million products annually.
  • The Farmer’s Dog provides pet food using a DTC model. Since their Series A funding round in 2017, the company has grown nearly 100X in customers and in revenue.
  • DTC cereal brand Magic Spoon hit the market in 2019 and recently expanded to sell their products in major retailers. The company received an $85 million investment in 2022 and now boasts more than one million DTC customers.

CPG Market Overview

In total, the U.S. CPG market makes up 10% of the national GDP.

The CPG industry supplies millions of jobs and trillions of dollars in economic impact.

The vast majority of CPG sales (45.9%) come from grocery stores.

And, the brands that dominate the CPG market are billion-dollar brands that nearly every American knows: Nestle, Procter & Gamble, Pepsi, Tyson, and L’Oreal just to name a few.

But small DTC brands have been pulling customers away from the CPG giants during the past few years.

K18 is a haircare startup that began with a direct-to-consumer model but now sells its products in Sephora stores.

Advertising is where the competition between brands gets very heated.

In fact, the CPG industry spends more on advertising than any other sector in the United States.

The grocery store industry alone spends $1.8 billion on advertising each year.

The beauty segment is another ultra-competitive sector of the CPG market.

L’Oreal spent more than $200 million advertising just one of its brands (L'Oreal Paris) in the United States in 2021.

L’Oreal Paris invests heavily in social media advertising.

In particular, as the number of shoppers buying online grows, the amount that CPG brands spend on digital advertising has been growing.

As of September 2022, CPG e-commerce sales were up more than 26% year-over-year. That includes a 35% jump for e-commerce beverage sales.

And, brands spent an estimated $36.03 billion on digital ads in 2022. That number is expected to grow to $41.69 billion by the end of 2023.

The amount of digital ad spend in the CPG industry has grown substantially since 2019.

Notable CPG Product Categories for 2023-24

Food and Beverage

Food and beverage drives the highest sales in the CPG market.

In May 2023, monthly food sales in the United States topped $1.3 tillion. That’s up from $1 trillion in May 2019.

Center-store food and beverage sales were up more than 9% year-over-year in 2023 and perimeter sales were up 6.1%.

Dollar sales are up in the food and beverage space. 

In particular, sales of plant-based foods are surging.

In 2022, plant-based dollar sales were up 7% over 2021.

The plant-based food market in the U.S. is worth $8 billion, according to the Good Food Institute.

In particular, beef replacement brands grew 14% in the last six months of 2022.

Jack & Annie’s is a food producer that’s using jackfruit to create meat-replacement products.

Search volume for “Jack & Annie’s” surged in 2022 and remains high.

The brand released three new frozen food products in late 2022: Buffalo Jack Patties, Crispy Jack Patties, and Crispy Gluten-Free Jack Tenders.

Cosmetics, Beauty, and Self-Care

Another category of CPG products that’s showing rapid growth is the self-care market, which has bloomed into a $450 billion space.

One popular segment is vitamins and supplements.

The percentage of U.S. adults taking vitamins and supplements has grown by 17 points since 2013.

70% of Americans now say they take vitamins or supplements.

Nearly two-fifths of vitamins and supplements are purchased within the retail pharmacy segment, but online sales in this space are expected to grow at a CAGR of more than 8% through 2030.

OTC Medicine and Healthcare

The OTC medicine space is growing, as well.

In 2022, Reckitt (the parent company of several hygiene, health, and nutrition brands) came in as the second-ranked growth leader among large companies in the CPG space.

Sales of the company’s Mucinex brand added $410 million of growth to the bottom line.

There are also several smaller brands in the at-home medicine space that are revitalizing CPG sales at big-box retailers.

For example, Wonderbelly’s antacid tablets will soon be stocked in 650 Target stores.

Wonderbelly’s antacid tablets are made from clean ingredients and free of talc, dyes, and artificial sweeteners.

The startup raised $3.375 million of funding in a 2022 seed round.

In another example, KinderMed has launched a line of children’s pain relief medicine that’s now being sold at major retailers like Walmart and Walgreens.

KinderMed offers seven OTC medications for children.

Notable CPG Brands for 2023-24


With a net revenue of $95.701 billion, Nestle ranked as the top CPG brand of 2022.

The company’s pet care brand, Purina, has recorded significant growth in the past year.

Revenue hit $19.385 billion in fiscal year 2022. That was up from $16.659 billion in fiscal year 2021.

That made the brand one of the largest contributors to Nestle’s organic growth in 2022.

Petcare has been one of Nestle’s best performing segments in the past year.

In addition, Nestle continues to invest in e-commerce and saw online sales amount to 14.3% of total group sales in 2022.

The company has also been acquiring additional brands in the past few months.

In February 2022, Nestle purchased a majority stake in Orgain and in October 2022, the company acquired Seattle's Best Coffee.


When it comes to mid-sized CPG companies, several fitness/energy drink brands are making headlines. Celsius sits at the top.

Search volume for “Celsius energy drink” is up 800% in the past five years.

Between 2021 and 2022, the brand experienced more than 50% sales growth.

Total revenue in 2022 was $654 million.

Celsius sells a variety of good-for-you energy drinks.

In 2023, Celsius has continued to achieve record-high sales.

The brand’s revenue was up more than 1,700% in the past five years, hitting an annualized growth rate of 79%.

Liquid Death

Liquid Death is a canned water brand that’s also experienced a dramatic rise in popularity in recent years.

Search volume for “Liquid Death” is up more than 9,600% in the past few years.

Thanks to viral marketing, the brand has quickly built a $700 million valuation.

Liquid Death’s unique packaging and viral marketing are aimed at making sparkling water as attractive to drink as a can of beer or an energy drink.

Liquid Death’s 2022 revenue hit $130 million. That was a dramatic increase from $45 million in 2021.

It was also ranked third on Instacart’s fastest-growing emerging brands of 2022.

The Rise of Private CPG Labels

The pandemic prompted many consumers to change their shopping behavior.

Buying store brands (also called “private labels”) is one of those habits that’s taken root in the lives of consumers.

A 2022 survey reports that 70% of shoppers in the United States have purchased a new or different brand than they had prior to the pandemic.

And, nearly 90% of shoppers now say they trust private labels just as much or more than national brands.

Insider Intelligence reports that nearly 80% of shoppers say they’re willing to purchase private-label products when it comes to pantry staples, personal care items, and other CPG items.

Nearly 90% of shoppers say they get a better value when purchasing from private-label brands.

Lower cost is the main driver of the private-label trend, but now that many shoppers have switched, data suggests they may never switch back to national brands.

More than 70% of shoppers in the U.S. say they’ll stick with private-label products even after inflation eases.

Only 9% say they’ll go back to national brands.

More than 85% of consumers say they’re likely to buy private-label products.

Small grocery stores are the most likely to bring in private-label shoppers.

More than 75% of products sold at Aldi are private-label goods and nearly 60% of items sold at Trader Joe’s are private-label.

Private-label products make up 77.5% of Aldi’s total sales.

Two of Target’s private-label brands are showing strong growth too.

Target launched Good & Gather as a private-label food brand in 2019, and it’s already a $3 billion brand. Another food brand launched by Target, Favorite Day, came out in 2021 and is now growing by double digits.

Search volume for “Good & Gather” has been building since 2020.

Consumers Want CPG Products and Brands to Be Sustainable

A 2022 survey from IRI and the NYU Stern Center for Sustainable Business reported that 77% of consumers believe sustainability is an important factor to consider when making a purchase. That was an 8% increase over 2021.

Their research also found that products marketed as sustainable were responsible for more than 30% of total growth in the CPG space between 2015 and 2021.

Sustainability-marketed products also posted a higher CAGR over that time period.

The CAGR for conventionally-marketed products was 2.7% but that number jumped to 7.34% for sustainability-marketed items.

Products marketed as sustainable items grew faster than conventionally-marketed products.

These products now represent 17% of the total sales in the CPG market.

Consumers are expecting CPG brands to continue to emphasize sustainability.

According to data from Neilsen, 46% of consumers expect brands to take on the most responsibility when it comes to making progress on sustainability.

Consumers believe that brands and the local government have the most responsibility when it comes to creating sustainable products and practices. 

Most consumers want brands to reduce their carbon footprint and offer products that are sustainably produced.

In the CPG industry, a large part of sustainability comes down to packaging.

For example, candy is usually wrapped in plastic, but Hershey’s is committed to changing that packaging to a more sustainable option.

The company has set a goal saying that 100% of their plastic packaging will be recyclable, reusable or compostable by 2030.

Between 2015 and 2020, the company reduced the weight of their packaging by 25 million pounds and has plans to take it down another 25 million pounds by 2030. This effort is aimed at reducing the cost and environmental impact of transporting the product.

Packaging has also become a hot-button issue in the cleaning products segment.

Search interest in “sustainable packaging” has grown more than 200% since 2019.

There are a few zero-packaging CPG brands in the market today.

Take Dropps, for example.

Many of the company’s cleaning products and toiletry items come packaged as super–concentrated pods. Consumers drop a pod into the bottle and fill with water to refill their product.

Hand soap refills from Dropps come packaged as pods.

All of the products are shipped to the consumer’s door in a recyclable cardboard box that’s sealed with recyclable kraft paper tape.

Convenience Is King

Today’s CPG shoppers want to get their items quickly and conveniently.

For many, that can be achieved by shopping online.

Overall, the online grocery shopping segment is expected to grow at a CAGR of 19.97% to reach more than $2 trillion by 2030.

The online grocery market is growing rapidly as tech-savvy consumers look for convenient ways to shop.

More than 150 million people in the U.S. made at least one online grocery purchase in 2022 and in the next two years, that number could reach 163 million.

Younger generations are especially interested in shopping for CPG products online.

In one survey, Gen Z adults (those 18-24 years old) said in-store and online shopping ranked nearly the same in terms of convenience and finding the items they need.

The survey also reported that Millennials (those 25-40 years old) who are parents make 23% of their packaged food and beverage purchases online.

Consumers’ needs are driving change in the delivery of CPG products, as well.

Instacart is the clear leader of the delivery segment with 13.7 million active users and $2.5 billion in annual revenue.

By 2024, experts predict Instacart will hit $40.54 billion in sales.

Instacart is expected to grow sales by 15% this year.

But there are a few other players in the space.

DoorDash began delivering for grocery stores and other retailers in 2020 and is still seeing sizable growth in the service.

Search interest in “DoorDash grocery” has grown nearly 1,500% since 2019.

In 2022, the grocery delivery segment of DoorDash grew 80% year-over-year.

Still, some retailers are taking control of the delivery of their products.

Heinen’s, a supermarket chain in Ohio and Illinois, recently announced they would no longer partner with Instacart and instead, would offer their own branded grocery delivery service.

Heinen’s will now run its own branded pickup and delivery platform.


That wraps up our overview of the CPG market and the trends expected to impact the space in the months to come.

The CPG market is poised for continued growth and innovation. The rise of e-commerce, DTC brands, and enhanced delivery options shows that consumers value convenience and a personalized experience.

Certain segments like plant-based foods, energy drinks, and pet care are driving growth right now. But that could change. As consumers search out private-label products and pay more attention to sustainability measures, CPG companies will need to be quick to adapt.

With a customer-centric approach and a digital-first attitude, CPG brands can thrive in the ever-evolving market.